Morepen offers scheme to convert FDs to equity

By Our Corporate Bureau | 21 Jan 2004

New Delhi: The board of directors of Morepen Laboratories Ltd (MLL) yesterday decided to give its fixed deposit holders the option of converting fixed deposits into equity.

According to a company statement, "This would give the option to FD holders to convert their deposit amount into fully convertible debentures and also provide reward by way of possible equity upside."

This scheme has been approved after seeking views from the FD brokers, financial institutions and banks. It would now have to receive a nod from the shareholders at the forthcoming annual general meeting.

The company on its part claimed that it is poised to make progress in terms of sales and profits in the fourth quarter. "The sales in the December quarter represent a trend of consolidation given that this is the second consecutive quarter in which downfall of sales of the previous three quarters has been arrested," said the company. The company''s share today hovered around Rs 9.90